One of the primary drivers of Namibia’s attractiveness as an investment destination is its supportive government and investor-friendly policies

JOHANNESBURG, South Africa, September 18, 2024/APO Group/ — 

By Rachel Mushabati, Senior Associate Attorney, CLG Namibia (www.CLGGlobal.com).

Namibia, a nation renowned for its breath-taking scenery and abundant wildlife, is becoming more and more well-known for its booming oil and gas industry. Namibia is quickly rising to the top of Africa’s oil and gas exploration and investment destinations because to notable discoveries and a favourable investment climate. Here are some reasons for investors to be interested in Namibia’s developing economy and how business advice and strategic law might improve investment prospects.

A Treasure Trove of Potential

Namibia’s oil and gas sector has garnered international attention due to its substantial potential. Recent exploratory drilling has revealed promising reserves off the coast, particularly in the Namibian offshore region. After several years of extensive exploration, Namibia realized its first oil discoveries. In early 2022, Shell, QatarEnergy, and NAMCOR made a landmark discovery in the deep-water well in the Orange Basin, offshore southern Namibia. This was followed by another significant find in 2023, when TotalEnergies, QatarEnergy, and NAMCOR discovered light oil with associated gas on the Venus prospect, also in the Orange Basin. In 2024, Galp Energia, Custos, and NAMCOR further solidified Namibia’s status with a high-quality light oil discovery in the Mopane-1X well, located in the same prolific basin.[1] These discoveries, alongside notable formations such as the Kudu Gas Field, have positioned Namibia as a key player in the global energy market. The country’s geological formations, particularly in the Orange Basin, have demonstrated significant hydrocarbon potential, making it an attractive destination for exploration and production.[2]

Government Support and Favourable Policies

One of the primary drivers of Namibia’s attractiveness as an investment destination is its supportive government and investor-friendly policies. The Namibian government has implemented a range of initiatives to foster a conducive environment for oil and gas investments. Namibia’s Investment Promotion Act[3] is a pivotal component in the country’s strategy to attract and support investors. This comprehensive legislation provides a range of incentives to enhance the financial viability of projects and reduce initial costs[4]. It also ensures robust legal protections, safeguarding investors’ property rights and offering non-discriminatory treatment compared to domestic investors. By streamlining licensing processes and providing one-stop-shop services[5], the Act simplifies the investment process and reduces bureaucratic hurdles. Additionally, it supports priority sectors such as oil and gas, reinforcing Namibia’s commitment to fostering a transparent, stable, and investor-friendly environment. Namibia’s commitment to creating a stable and attractive investment environment is evident through its proactive approach in engaging with international investors and offering competitive terms.

Strategic Location and Infrastructure

Namibia’s strategic location along the Atlantic Ocean provides a crucial advantage for oil and gas operations. The country’s well-developed port infrastructure, particularly the Port of Walvis Bay, facilitates efficient export and import processes.[6] Additionally, Namibia’s proximity to key international markets enhances its appeal as a hub for energy resources. The development of supporting infrastructure, such as pipelines and storage facilities, further strengthens Namibia’s position as a key player in the global energy supply chain.

Economic Growth and Sustainable Investment Opportunities in Namibia’s Oil and Gas Sector

Investing in Namibia’s oil and gas sector not only presents a wealth of economic opportunities but also aligns with the principles of sustainability and responsible investment. The sector’s expansion is expected to stimulate ancillary industries such as construction, logistics, and technology, benefiting local businesses through increased demand for related services and products. The influx of foreign investment is anticipated to drive job creation, infrastructure development, and overall economic growth. Concurrently, Namibia places a strong emphasis on sustainability and environmental stewardship. The government and industry stakeholders are committed to responsible investment practices that protect local communities and ecosystems. Investors who prioritize these practices will not only contribute to positive environmental and social outcomes but also bolster their own reputation and long-term success in the market.

Conclusion

Namibia’s emerging oil and gas sector offers a compelling opportunity for investors seeking to capitalize on new and promising markets. With its substantial hydrocarbon potential, favourable government policies, strategic location, and burgeoning economic opportunities, Namibia is poised to become a prominent player in the global energy arena. The sector’s growth is anticipated to drive significant benefits across various ancillary industries and create widespread economic development. Additionally, the emphasis on sustainability and responsible investment practices aligns with global standards, ensuring that investments contribute positively to local communities and the environment.

However, successfully navigating this promising landscape requires expert guidance. Engaging with local legal and business advisory services can provide investors with crucial insights, help manage regulatory complexities, and enhance overall investment strategies. By leveraging the expertise of these advisory services, investors can maximize their potential for success and make a meaningful contribution to Namibia’s oil and gas sector. For those ready to explore the opportunities in Namibia’s oil and gas industry, the time to act is now. With the right expertise and strategic approach, investors can unlock substantial rewards and play a pivotal role in the growth of this exciting sector.

Namibia’s oil and gas sector has garnered international attention due to its substantial potential

[1] NAMCOR. Press Releases. Retrieved from https://apo-opa.co/3XO3SZ4. Last accessed 5 September 2024.

[2] Koning, T. “The Orange Basin, Deepwater Namibia- What’s Going on with Its Resources, Reserves and Future Production of Natural Gas?”. Retrieved from https://apo-opa.co/3XMKCv1. Last accessed 6 September 2024.

[3] Namibia Investment Promotion Act 9 of 2016

[4] Namibia Investment Promotion Act Section 4 (4)

[5] Namibia Investment Promotion Act Section 7

[6] Namport. “Welcome to the Port of Walvis Bay”. Retrieved from https://apo-opa.co/3Xq02UC. Last accessed 6 September 2024.

Distributed by APO Group on behalf of CLG.

The AEW: Invest in African Energy 2024 conference will drive new finance–focused solutions for Africa’s oil, gas and energy projects during an exclusive panel discussion

CAPE TOWN, South Africa, September 16, 2024/APO Group/ — 

Global investment in upstream oil and gas is set to reach $570 billion in 2024, showing a 7% increase compared to 2023 expenditure. Of this, 33% is expected to be directed toward frontier assets, presenting a strategic opportunity for emerging oil and gas markets in Africa. Meanwhile, the International Energy Agency has estimated that delivering modern energy to the entire African continent – where more than 600 million people still lack access to electricity – will require up to $25 billion in annual spending through 2030.

With a lack of investment representing one of the primary challenges to oil and gas project financing in Africa, this year’s African Energy Week (AEW): Invest in African Energy 2024 event – taking place in Cape Town from November 4-8 – will feature a panel discussion on Unlocking African Assets Through New Risk and Finance Solutions. Sponsored by Global international insurance broker Howden and Pan African Insursnce advisory firm TRM Risk management, the session will explore the mechanisms, opportunities and challenges shaping Africa’s energy funding space, identifying new strategies for accelerating project development and maintaining a competitive advantage within the global energy landscape.

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

The Unlocking African Assets Through New Risk and Finance Solutions discussion will feature an esteemed lineup of speakers, including Senior Director & Head of Natural Resources at Africa Finance Corporation Osam Iyahen; COO & Executive Director of green energy supplier Renergen Nick Mitchell and Howden Broking Insurance Managing Director and Head of Natural resources, Sam Martyn. The panel will be moderated by TRM Managing Director Hugo Hill.

Financial institutions across Africa’s oil and gas sector have an essential role to play in driving industry growth

The session will explore the mechanisms, opportunities and challenges shaping Africa’s energy funding space, identifying new strategies for accelerating project development and maintaining a competitive advantage within the global energy landscape and how political risk and credit Insurance can facilitate investment.

Serving as a milestone development in the sector, the African Petroleum Producers’ Organization and multilateral financial institution Afreximbank signed an agreement last June establishing the Africa Energy Bank. The bank is set up to facilitate, promote and finance the development of oil, gas and energy projects in Africa, and will play a central role in strengthening energy access by providing the financing needed to get large-scale projects off the ground. With $5 billion in initial capital raised from African signatories so far, the institution aims to close the funding gap by providing capital to oil and gas projects across the continent.

Despite the role oil and gas has played and will continue to play in Africa, global efforts to transition to alternative sources of fuel have created a stark investment gap. Fossil fuel funding has been declining in recent years, as international oil companies divest their oil and gas assets in favor of lower-carbon investments. As a result, one of the challenges in Africa’s oil and gas sector is reliance on both foreign expertise and funding. The Africa Energy Bank serves as a prime opportunity for the continent to attract interest and stimulate participation from local and regional governments and private sector players to fund future projects.

African governments play a crucial role in developers’ ability to secure financing for oil and gas projects. Many countries on the continent offer flexible profit-sharing, royalty and tax structures that facilitate quicker cost recovery, which is a major consideration for investors. Equatorial Guinea has established a one-stop shop that enables investors to set up a business in the country in one week, while South Africa’s InvestSA platform serves to facilitate investment, fast-track projects and reduce government red tape. Earlier this year, Angola implemented a one-stop shop for local content compliance in the oil and gas industry, enhancing transparency and policy implementation across the sector.

Financial delays are a major risk to project timelines, requiring companies to secure the necessary funding before launching large-scale projects. As such, the establishment of certain financial mechanisms in the oil and gas sector can enable companies to better access funding, as well as unlock alternative sources of capital such as sovereign wealth funds, development finance institutions, bond markets and more. One such mechanism is public-private partnerships (PPPs), which can accelerate project timelines by sharing risks, resources and expertise. Governments can encourage PPPs by offering incentives such as tax breaks, reduced royalties or fast-tracked approvals for projects that involve private sector investment. PPPs are especially effective in infrastructure development, where private companies can bring in advanced technology and expertise to expedite construction and operation phases.

“Financial institutions across Africa’s oil and gas sector have an essential role to play in driving industry growth. By providing much-needed capital to critical energy projects, they help bridge the investment gap and reduce the level of perceived risk that has long hindered development. Their involvement ensures that Africa’s resources are harnessed in a way that benefits local economies, creates jobs and supports energy access. As we unlock new opportunities, the support of these institutions will be paramount,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

Distributed by APO Group on behalf of African Energy Chamber.

Speakers from the Gas Exporting Countries Forum, African Energy Chamber, S&P Global Commodity Insights and more have joined the upcoming Angola Oil & Gas conference

LUANDA, Angola, September 16, 2024/APO Group/ — 

With an investment pipeline of more than $60 billion expected in the upcoming five years, Angola’s upstream industry is seeing robust activity across its mergers and acquisition landscape. Through its six-year licensing round and other investment promotion initiatives, the country is attracting sustained foreign investment in offshore exploration, while new commercial opportunities continue to entice deals across Angola’s blocks.  

Returning for its fifth edition from October 2-3 in Luanda, the Angola Oil & Gas (AOG) conference serves as the premier platform for the oil and gas industry to sign deals and drive projects forward. On the back of seven deals signed at the 2023 edition of the event, AOG 2024 will usher in new opportunities for collaboration and investment, with speakers from global energy associations and market intelligence firms facilitating dialogue and deals.  

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the National Oil, Gas and Biofuels Agency; the Petroleum Derivatives Regulatory Institute; national oil company Sonangol; and the African Energy Chamber; the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.  

Aiming to boost its domestic LNG capacity and increase the share of gas in its energy mix to 25% by 2025, Angola offers strategic opportunities for investors and project developers across the natural gas value chain. The country expects its first non-associated gas project – the Quiluma and Maboqueiro fields – to come online in 2026, while the Sanha Lean Gas Connection Project – connecting Blocks 0 and 14 to the Angola LNG facility – will start production in 2024. At AOG 2024, Rafik Amara, Senior Gas Markets Analyst at the Gas Exporting Countries Forum and Denise Cortês-Keyser, Advisor at the Global Gas Center, will share their respective insights into Angola’s role as a global gas producer https://apo-opa.co/4gpFbcM.

In addition to gas projects, Angola is advancing a portfolio of oil projects under efforts to maintain production above one million barrels per day beyond 2027. The country plans to leverage its strategic position in southern Africa to cement its role as a regional petroleum hub, creating newfound opportunities to meet consumer demand in neighboring countries such as South Africa. Adrian Strydom, CEO of the South African Oil & Gas Alliance, has joined AOG 2024 to discuss opportunities in this area.  

A strong advocate for the development of Africa’s oil and gas industry, the African Energy Chamber (AEC) – serving as the voice of the African energy sector – has been resolute in its approach to facilitating investment into and supporting Angola’s industry expansion. During the 2023 edition of AOG, the AEC’s Executive Chairman NJ Ayuk emphasized that the Chamber “has been particularly pleased to watch the path that Angola has been taking to drive its [oil and gas] industry forward.” Ayuk returns to AOG 2024 to discuss the country’s progress and future hydrocarbon outlook.  

Angola has taken a proactive approach to attracting foreign investment across its entire oil and gas value chain. This is evident through measures such as a six-year licensing strategy launched in 2019; a permanent offer program providing access to block opportunities; a recently-launched marginal field program; and improved fiscals for incremental production and onshore exploration. As global interest continues to grow in Angola’s investment opportunities, market intelligence firms offer the insights and data needed for companies to make informed decisions.  

During AOG 2024, Ian Thom, Upstream Director at Wood Mackenzie, will share data-driven insights into Angola’s energy sector opportunities. He is joined by representatives from S&P Global Commodity Insights, including the company’s Senior Energy Specialist Jennifer Jumbe; Director for African Regional Research Justin Cochrane; and Associate Director Rodrigo Fiatikoski.  

For more information about the AOG 2024 program and speakers, visit https://apo-opa.co/3Zqkk35

Distributed by APO Group on behalf of Energy Capital & Power.